Lintec Acquires MACtac Americas, LLC

Group to strengthen foundation for printing adhesive papers and films
business in North America

December 08, 2016 08:00 AM Eastern Daylight Time

TOKYO--(EON: Enhanced Online News)--LINTEC Corporation (hereinafter “LINTEC”)
(TOKYO:7966)(ISIN:JP3977200009) has been in discussion with Evergreen
Holdings IV, LLC (hereinafter “Evergreen”), a wholly owning investor of
MACtac Americas Holdings, LLC, regarding the Acquisition of all the
membership interests of MACtac Americas, LLC (head office: Ohio, the
United States, hereinafter “MACtac”), a wholly owned subsidiary of
MACtac Americas Holdings, LLC and a manufacturer and distributor of
adhesive papers and films for printing in the United States. At a
meeting held on October 24, 2016, the Board of Directors of LINTEC
resolved to acquire all membership interests of MACtac through its
wholly owned holding company in the United States, LINTEC USA Holding,
Inc. (head office: Massachusetts, the United States), and concluded a
purchase agreement with Evergreen. LINTEC completed procedures for the
acquisition on December 1, 2016. Details are as follows:

“return to a growth path through active management and
continuous innovation”

Background on the Acquisition

LINTEC and its consolidated subsidiaries (hereinafter “the Group”)
adopted a “return to a growth path through active management and
continuous innovation” as their basic policy in LINTEC INNOVATION PLAN
2016 (LIP-2016), a three-year medium-term business plan launched in
April 2014. Based on that policy, the Group has worked on key
initiatives, such as “further promotion of global development” for
expanding operations in countries and regions expected to achieve
economic development and “promotion of strategic M&A” for rapidly
executing business strategies.

MACtac will maintain its manufacturing bases in the United States and
Mexico and continue to develop adhesive papers and films for printing,
mainly in North America. It has built a solid position in the U.S.
market by developing products using its unique excellent adhesion
formula and high-speed coating technology. MACtac also deals with
graphic sheets and various kinds of industrial and medical tapes.

LINTEC is convinced that full-scale entry into the North American market
for adhesive papers and films for printing and proactive development of
its original products using its own technological development
capabilities through MACtac will contribute significantly to the
acceleration of the global development of Printing and Variable
Information Products Operations, the core business of the Group. LINTEC
also plans to link MACtac’s acquisition to business enhancement and
expansion not only in the North American market, but also Japan and
other regions, by utilizing MACtac’s unique technical capabilities and
brand equity and maximizing synergy with LINTEC’s technologies.

Entering the North American market in earnest through the acquisition
of a leading company

In recent years, the Group has been strengthening its local
manufacturing and sales bases mainly in Asia where the market continues
to grow rapidly, developing sales channels and expanding the brand
recognition in Europe by making its first full presentation in LABELEXPO
EUROPE 2015. In November 2016, the Group made LINTEC Graphic Films Ltd.
in the United Kingdom, which was a partner company in sales, a
subsidiary to further strengthen the network in Europe, including LINTEC
Europe B.V., a sales subsidiary in the Netherlands.Subsequently,
the Group has decided to acquire MACtac, a manufacturer of adhesive
papers and films for printing, aiming to quickly build a sales channel
that will cover the boundless market in North America that accounts for
approximately 30% of the global adhesive label materials market and
continues to grow stably at an annual rate of 2 to 3%.

Vigorously pushing forward with efforts to improve customer
satisfaction by integrating with MACtac

The primary reason for choosing MACtac is that it has a long-standing
delivery record, strong brand power as well as excellent relations and
an impressive sales network with more than 1,000 quality customer
companies in the North American market. It is also a manufacturer that
has already established a firm footing as a peer of LINTEC. While LINTEC
has strength in film-based products, the main products of MACtac are
paper-based. In addition, MACtac has unique technology for formulating
hot-melt adhesives, which LINTEC does not have, as well as high-speed
coating facilities. Given these features, we believe that future
synergies are very promising.We will provide customer companies
mainly in North America with better quality products and services by
developing and proposing new products through the integration of
MACtac’s own technologies and LINTEC’s material development
technologies, while proactively developing LINTEC’s original products in
the North American market, harnessing brand power and the sales network
of MACtac.

ABOUT LINTEC

LINTEC is a leading company in the field of adhesive materials. The
product lineup covers many diversified fields including not only
adhesive papers and films for seals and labels, but also shatter-proof
window films, adhesive sheets for outdoor signs, interior finishing
mounting sheets, automobile-use adhesive products, semiconductor-related
tape, and LCD-related adhesive products.LINTEC also develops and
markets a diverse range of specialty paper products including color
papers for envelopes, as well as release papers and films, and casting
papers. The base paper, release liners used with adhesives are supplied
internally and products using this process technology are widely
available on the market.

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